Bitcoin Price Retreats After Fed Decision But 100 SMA Is The Key


Bitcoin price climbed higher towards $18,400 before there was a bearish reaction. BTC is now trading near a major support at $17,550 and might bounce back.

  • Bitcoin broke the $18,000 resistance zone before there was a downside correction.
  • The price is trading above $17,500 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $17,580 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a fresh increase unless it trades below the 100 hourly SMA.

Bitcoin Price Remains Supported

Bitcoin price extended its increase above the $17,800 resistance zone. BTC even climbed above the $18,000 resistance zone and settled well above the 100 hourly simple moving average.

The price traded as high as $18,387 before there was a bearish reaction. The Fed increased interest rates by 0.5%, sparking sharp moves in the market. BTC price reacted the downside and traded below the $18,000 support zone. There was a clear move below the 23.6% Fib retracement level of the upward move from the $16,880 low to $18,387 high.

However, bitcoin price is trading above $17,500 and the 100 hourly simple moving average. It is holding the 50% Fib retracement level of the upward move from the $16,880 low to $18,387 high.

There is also a key bullish trend line forming with support near $17,580 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $17,900 level. The first major resistance is near the $18,000 zone, above which the price may perhaps revisit the $18,400 zone.

The next major resistance is near $18,500, above which the price might gain pace and rise towards the $19,200 zone in the near term.

Downside Break in BTC?

If bitcoin fails to clear the $18,000 resistance, there could be more downsides. An immediate support on the downside is near the $17,580 level and the trend line support.

The next major support is near the $17,400 zone and the 100 hourly simple moving average. A downside break below the $17,400 support might call more losses. In the stated case, the price could decline towards the $16,800 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $17,580, followed by $17,400.

Major Resistance Levels – $17,900, $18,000 and $18,500.



Source link: https://newsbtc.com/analysis/btc/bitcoin-price-retreats-18k/

Sponsors

spot_img

Latest

Why Knicks head coach Tom Thibodeau needs to cool it with big minutes for key players

It’s hard to argue that Knicks head coach Tom Thibodeau is having anything but a spectacular year. His team was 32-17, good for second...

Akira Toriyama’s Sand Land Manga is Becoming a 2023 Anime

Toriyama released Sand Land back in 2000, and it tells the story of the demon prince Beelzebub, who embarks on a quest with...

Lewis Dunk pulls out of England squad ahead of Euro 2024 qualifiers with Jude Bellingham to also miss out

Lewis Dunk has withdrawn from the England squad ahead of the upcoming Euro 2024 qualifiers. The Brighton defender has been struggling with a niggling...

2023 Lakers draft prospect profile: Nadir Hifi

As of now, the Los Angeles Lakers have solid backcourt depth with D’Angelo Russell and Austin Reaves starting and Dennis Schroder, Lonnie Walker...

Women’s rugby registrations in New Zealand ‘through the roof’

The excitement and influence of the 2021 (played in 2022) Rugby World Cup was evident well before the tournament kicked off, and...